Trading Plan for 10/23

If fulfilling AND rejecting the next higher target isn”t bullish… then it might as well be bearish after several day”s of buying pressure have been expended already. Putting into play the next higher target and delaying its test would have helped to absorb the reaction down. But now the reaction down must be defended to avoid a much bigger downleg…P.S. Here”s the link to the recording of Wednesday”s post-close Market Wrap.

Pattern points… (Setups and technicals)
Two bearish paths for Wednesday”s session were discussed here yesterday. Both formed. Overnight action followed the sequence of a Pivot Reversal setup, and post-open action produced the momentary blips-up to test 1941.00 and 1943.00.

When the morning”s bias-up environment lapsed and the bearish consequences developed , the balance of the session trended down. Relentlessly.All the way to the 1920.50-1921.25 level recovered Tuesday.

And recovering 1920.50-1921.25 was relevant. Spending an entire timing window above it had put into play the 1941.00-1943.00 area. Fulfilling that buying pressure and the retracing the entire rally leg does suggest buying pressure is done.

What”s Next… (Outlook and opportunities)
1920.50-1921.25 was still being tested as support through the close. That”s not bullish unless Thursday”s open were to gap up above 1931.50, which would form a session-long rally setup. Otherwise, at least a deeper correction of the recent bounce is underway, if not its complete reversal.